Viking Therapeutics' Stock Tanks on Mixed Data From Obesity Pill Study

Core Insights - Viking Therapeutics' shares fell 42% following the phase II VENTURE-Oral Dosing study results for VK2735, despite achieving primary and secondary endpoints [1][4] - The study showed significant weight loss in participants, with the highest dose resulting in a 12.2% reduction in body weight [3][6] - High patient dropout rates due to adverse events raised concerns about the drug's tolerability, impacting investor sentiment [4][6] Company Summary - The VENTURE-Oral Dosing study involved approximately 280 adults with obesity or overweight conditions, randomized into six dosing arms [2] - Participants on the highest dose (120 mg) lost an average of 26.6 lbs over 13 weeks, while the placebo group lost only 1.3% [3] - The dropout rate for VK2735 was 28%, compared to 18% for the placebo, leading to skepticism about the drug's market viability [4][6] Industry Context - The obesity market is projected to reach $100 billion in the U.S. by 2030, attracting significant interest from pharmaceutical companies [8] - Eli Lilly and Novo Nordisk are key players in the obesity treatment space, with ongoing developments in oral weight-loss pills [9] - Novo Nordisk is likely to be the first to market an oral obesity pill, with a regulatory filing under FDA review for an oral version of Wegovy [9]